Finding 1062596 (2023-005)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-09-09
Audit: 318808
Organization: Donnelly College (KS)

AI Summary

  • Core Issue: The College failed to report accurate and timely disbursement dates and amounts to the Common Origination and Disbursement (COD) system.
  • Impacted Requirements: Compliance with 34 CFR 690.83 and related guidance mandates accurate reporting of Pell and Direct Loan records.
  • Recommended Follow-Up: Update processes for reporting to COD and establish a formal reconciliation process to ensure ongoing accuracy.

Finding Text

Student Financial Assistance Cluster U.S. Department of Education Federal Direct Student Loans 84.268 Federal Pell Grant Program 84.063 Award Year 2023 Criteria or Specific Requirement - Reporting. According to 34 CFR 690.83, Dear Colleague Letter Gen 13-13, and Federal Register Volume 84, Number 212, November 1, 2019 an institution must submit Pell and Direct Loan origination records and disbursement records to the Common Origination and Disbursement (COD) in a timely and accurate manner. Condition - The College did not ensure accurate and timely notification to the Common Origination and Disburement (COD) website for disburement dates and amounts. Questioned Costs - None. Context - Out of a population of 477 records, a sample of 25 students was selected for testing. Out of these 25 students selected for testing, there were six instances in which the date of the student's award was misstated between the institutional record and the COD. Additionally, there were two students selected where the amount of the federal award was not consistent between the institutional records and the COD. The sample was not, and was not intended to be, a statistically valid sample. Effect - The COD reporting system was not accurately notified of the student award dates and amounts. Cause - Lack of communication and oversight when reporting information on the COD website. Identification as a Repeat Finding - 2022-002, 2021-002, 2020-004, 2019-003. Recommendation - The College should review and update its processes and controls to ensure student records for federal awards are properly stated on the COD website. Additionally, we recommend that a formal reconciliation process is completed to validate the procedure is completed on a regular basis. Views of Responsible Officials and Planned Corrective Actions - Donnelly College concurs with the finding. The Director of Financial Aid has implemented procedures to post aid in batches and to coordinate the timing of the postings with the Business Office. Financial Aid staff review documentation from each batch posted and compare the data to the awards posted on COD. Each month the Director reconciles her records to COD.

Categories

Student Financial Aid Matching / Level of Effort / Earmarking Reporting

Other Findings in this Audit

  • 486153 2023-005
    Significant Deficiency Repeat
  • 486154 2023-005
    Significant Deficiency Repeat
  • 1062595 2023-005
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.031 Higher Education Institutional Aid $2.24M
84.063 Federal Pell Grant Program $1.20M
84.268 Federal Direct Student Loans $676,828
45.130 Promotion of the Humanities Challenge Grants $370,000
84.425 Covid-19 - Education Stabilization Fund - Institutional Portion $283,194
84.042 Trio Student Support Services $281,366
84.425 Covid-19 - Education Stabilization Fund - Student Portion $117,350
84.007 Federal Supplemental Educational Opportunity Grants $60,081
47.076 Education and Human Resources $46,317
84.033 Federal Work-Study Program $42,603
84.425 Covid-19 - Edcuation Stabilization Fund - Minority Serving Institutions $28,713